As part of the launch of the British government’s industrial strategy for safeguarding the UK economy post-Brexit, it has announced a multi-billion pound sector deal designed to boost the nation’s life science sector.
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The deal is intended to foster “new pioneering treatments and medical technologies” in the UK, in order to improve patient outcomes whilst simultaneously bolstering economic growth.
The deal involves substantial investment from private and charitable sectors and significant commitments in research and development from the government.
The Sector Deal forms part of the government's Industrial Strategy which details how much investment the government is putting into various different industries over the next three years.
Four of the key concerns of the Industrial Strategy are artificial intelligence, clean growth, an ageing society and the future of mobility.
An Artificial Intelligence Sector Deal was also announced to place the UK as a global leader in developing AI technologies. The Sector Deal references companies such as Deepmind and Babylon and estimates that AI can add £232 billion to the UK economy by 2030,.
Sector deals already exist in some industries; for example, the government’s long partnership with the Auto Council and more recent collaborations, which include tourism and the creative industries.
The government says it looks to extend such partnerships to other industries which have demonstrated an interest in doing so.
The life sciences sector is export focused, generating £64 billion of turnover and employing over 233,000 scientists and staff. The UK is home to major players such as GSK and AstraZeneca.
Charities such as the Wellcome Trust and Cancer Research UK play key roles in the industry.
The Sector Deal builds on the Life Sciences Industrial Strategy, which was led by the sector and Professor Sir John Bell.
Business Secretary Greg Clark said: “The news comes as the government also announces it has secured a significant investment in the UK’s life science sector from MSD (also known as Merck in the US) – one of the major players in pharma. MSD will open a UK research and innovation hub, focussed on future treatments for patients and pioneering medicines.
“Our life sciences sector is one of the UK’s fastest developing industries, with a turnover in excess of £64 billion, employing 233,000 across the UK.
“MSD’s commitment today, and the wider Sector Deal investment we have secured, proves the process outlined in the Industrial Strategy can give companies the confidence and direction they need to invest in the UK. It will ensure Britain continues to be at the forefront of innovation and represents a huge vote of confidence in our Industrial Strategy.”
Speaking about the Industrial Strategy, Theresa May said: "Our modern Industrial Strategy will shape a stronger and fairer economy for decades to come. It will help create the conditions where successful businesses can emerge and grow, and support these businesses in seizing the big opportunities of our time, such as artificial intelligence and big data, whilst also making sure our young people have the skills to take on the high-paid, high-skilled jobs this creates."